Tender management remains one of the most business-critical jobs for logistics companies. A significant share of revenue is generated from bids, with the aggregated value of tenders amounting up to billions of euros p.a. for large organizations.As a result, tender management is the arena in which the main battle for future revenue is fought. Yet, it is wrong to consider it purely a function to manage the top line. It is a strategic game that, if played well, ensures critical mass is generated, flows are optimized and procurement power is strengthened. Thus, it lays the foundation to handle future business more efficiently – at higher profits.

In a bidding environment that is characterized by high transparency, fierce competition and strict rules, service offerings among providers are commoditized. The whole negotiation process is reduced to one variable - the price - which is not very attractive to most logistics companies. Hence, tender management is seen as a necessary evil, rather than an opportunity for future excellence . This is also reflected in the way it is set up and executed in many logistics companies: non-harmonized processes, high manual efforts, endless escalations and limited technology application are still the status quo.Accepting the fact that large bids are indeed a commodity-purchasing exercise for clients does not mean company profits have to suffer in the long run. However, neglecting the strategic importance of tender management and not utilizing it properly does.